Bloomberg Warns of the Threat of Deeper Recession in Russia
OREANDA-NEWS. Bloomberg agency reports that the unwillingness of the Russian authorities to allocate large sums to support the economy, following the example of other countries experiencing difficulties due to the epidemic of the coronavirus infection, may subsequently complicate its recovery.
“Russia is doing less than most countries on the fiscal front to cushion the blow from lockdowns and spillovers. That might be justifiable given the collapse in crude, but the consequence will be a deeper recession and slower recovery,” Scott Johnson, economist at Bloomberg, said.
The agency notes that the Kremlin considers it necessary to be prepared for a long period of low oil prices. “They need to spend the reserves carefully because that’s all there is,” Alexandra Suslina, a budget specialist at the Economic Expert Group, explained.